The Learning Organisation: Are we learning - and fast enough?

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Leadership for Sustainability

M2 Sustainable Development: Organisational Perspectives

The Learning Organisation: Are we learning – and fast enough?

Malmö, February 16, 2016

Mike Townsend

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An introduction: My journey…

1985

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2010

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1995

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Engineering Business

SustainabilityEconomy

Education: BSL, CBS, DIS, University of Oslo, Henley Business School, Birmingham Business School

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• Frame: in context of sustainable development

• Business perspectives

• Explore responses to the changing landscape

• Dealing with complexity

• Concepts/models

• Critical perspectives: Are we really learning?

• Practical insights and cases

• Lots of questions, interaction, discussion, some group work

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What we will cover today…

The Learning Organisation: Are we learning – and fast enough?

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Opening question…

What is a learning organisation?

Take 2 minutes, talking to your partner…

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Some definitions: The learning organisation…

Learning organizations [are] organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole together.

(Senge 1990: 3)

The Learning Company is a vision of what might be possible. It is not brought about simply by training individuals; it can only happen as a result of learning at the whole organization level. A Learning Company is an organization that facilitates the learning of all its members and continuously transforms itself.

(Pedler et. al. 1991: 1)

Learning organizations are characterized by total employee involvement in a process of collaboratively conducted, collectively accountable change directed towards shared values or principles.

(Watkins and Marsick 1992: 118)

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Some definitions: The learning organisation…

Learning organizations [are] organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole together.

(Senge 1990: 3)

The Learning Company is a vision of what might be possible. It is not brought about simply by training individuals; it can only happen as a result of learning at the whole organization level. A Learning Company is an organization that facilitates the learning of all its members and continuously transforms itself.

(Pedler et. al. 1991: 1)

Learning organizations are characterized by total employee involvement in a process of collaboratively conducted, collectively accountable change directed towards shared values or principles.

(Watkins and Marsick 1992: 118)

Q: What are the key attributes of a learning organisation?

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The learning organisation: attributes

People…• Continually expending capacity to create desirable results• Nurture new & expansive patterns of thinking• Collective aspiration set free!• Continually ‘see the whole’ together

Organisation…• Vision of what might be possible• Whole organisation level• Across all members• Continuous transformation• Total employee involvement• Conducted collaboratively• Collective accountability• Towards shared values/principles

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Q: Any examples you can think of?

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Let’s focus on the learning aspect…

Organisational learning is defined as changes in organisational practices (including routines and procedures, structures, technologies, system and so on) that are mediated through individual learning or problem solving.

Ellström (2001)

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Let’s focus on the learning aspect…

Organisational learning is defined as changes in organisational practices (including routines and procedures, structures, technologies, system and so on) that are mediated through individual learning or problem solving.

Ellström (2001)

Key dimensions:* Change – in organisational practices* Through – individual learning, or problem solving


Learning: Feed-Forward and Feedback processes

Source: Crossan et al. (1999)

Four stages of learning at three levels:


Linking learning with flexibility, strategy & performance

Source: Santos-Vijande, M. L., López-Sánchez, J. A., & Trespalaciosa, J. A. (2012). How organizational learning affects a firm's flexibility, competitive strategy, and performance

How can we translate learning into performance?


Small business: Linking ‘entrepreneurial Orientation’ with performance

Source: Alegra & Chiva (2013)


Exploring further…

Q: Why is our notion of the learning organisation, more

important than ever?

“Insanity: doing the same thing over and over again and expecting different results.”

Albert Einstein



Q: What do we mean by a ‘VUCA’ world?



We are living and working in an increasingly volatile, uncertain, complex, and ambiguous (VUCA) world.

This means the context for delivering a sustainable transition is extremely challenging.

Source: Bennett & Lemoine (2014) Harvard Business Review


In the context of sustainable development…

What challenges do we see ahead?

Thinking about intuiting, interpreting, integrating & institutionalising…

Thinking about strategic flexibility…

Perhaps, we need a strategic radar…?


The Great Acceleration

Source: Steffen et al. (2015)


We are crossing planetary boundaries

Current status of the control variables for seven of the planetary boundaries. The green zone is the safe operating space, the yellow represents the zone of uncertainty (increasing risk), and the

red is a high-risk zone.

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Sustainable development indicators

Living Planet Indicators

WWF One Planet Living

Global Living Planet Index

Global Ecological Footprint

Source: WWF, Living Planet Reports


From a business risk perspective…

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Systems thinking applies…

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Further societal and systemic risks

Poverty, exclusion, inequality, lack of opportunity…

1980-2005: Highest earning 1% of US population increased share of taxable income from 9 to 19% (Korten, 2009)

UK has the fastest growing gap between rich and poor in developed world (OECD, 2011)

• Growth has been slowing for some time (Haque, 2011)

• Illusion…unsustainable ‘phantom wealth’ (Korten, 2009)

• Trickle-down-effect vs. wealth concentration (Korten, 2009)

• Shareholder returns lower (Martin, 2010)

• Paradox of inequality (Handy, 1995)

• Expansion or collapse…

• Think about our relationship with economic domain…


Shifting Perspectives: From business risk to ‘opportunity’…

Source: Monday Morning, Global Opportunity Report (2016)


Sustainable Development Goals: Opportunity?

Source: United Nations (2015)


The sweet spot: aligning opportunities and SDGs

Source: Monday Morning, Global Opportunity Report (2016)


A further level of complexity…

Disruption! New business models


The business response…

How do we need to operate in this landscape of risk & opportunity?

How would a learning organisation respond?


Group Exercise : develop a strategic radar

Business: How do we need to operate in this landscape of risk & opportunity?

Develop a strategic radar: 1. Identify the risks & opportunities (SD perspectives)2. Explore their implications for your chosen business3. Capture: how would a ‘learning organisation’ respond?

Different types of business1. Automotive manufacturer2. Bank3. FMCG4. Household goods company5. Large retail store6. Mining company7. Oil company

Arrange yourself in 7 groups, of 5 or 6 people: take 20 mins; get ready to report back.


Group Discussion

* What are the risks and opportunities?

* What are the implications?

* How would a learning organisation respond?


Organisations: are we learning?

Q: How are companies currently responding to risks and opportunities?


Thinking about becoming more sustainable…

Is CSR an adequate response?

While there is more noise than ever, there is a huge question mark over how much of this translates into meaningful action: what is the impact of CSR – and the extent and depth of real change for the better? (Townsend, 2015)

"Corporate Social Responsibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large.”

(WBCSD)


The emerging evidence doesn’t look good…

If we accept that a sustainable world is the shared desirable outcome….

We are barely making an impact…

• Global greenhouse gas emissions have grown nearly twice as fast over the past decade, compared with the previous thirty years – despite the global economic slowdown (IPCC, 2014)

• We are extracting 50% more natural resources than was the case only thirty years ago – around 60 billion tonnes of raw materials each year (SERI/FoE, 2009).

• We are clearly not living within planetary limits – we already need 1.5 planets (average), and rising, to provide for our insatiable demands: 3 planets in EU, 5 planets in US (WWF, 2014).

• Little real progress on a range of metrics in the world of business (GreenBiz/TrueCost, 2014)

• Some hope: SDGs, COP21, potential for decoupling on energy emissions, but scale and pace of change is, currently, underwhelming…


The business response: CSR – do we really mean it?

According to a new analysis of 40,000 CSR reports, from around the world – developed by the Technical University of Denmark (DTU):

Less than 5% of organisations made references to planetary or ecological limits, and only 31 organisations have actually engaged with these limits, to define science-based performance targets and strategies, to inspire changes in product portfolios or business models.

Could it be that at least 95% of CSR efforts are merely exercises in window-dressing?

Data Source: Bjørn et al (2016) Is Earth recognized as a finite system in corporate responsibility reporting?


CSR: Fundamental issues…

• Business-as-usual (BAU) mindset– Incremental change vs. radical

shifts.

• Primary purpose of business:– Profit maximisation vs. holistic

range of societal & environmental outcomes?

– Can we serve two masters?

• Is an assurance-based tick-sheet model adequate in volatile context?

• Or, do we need to go further – and, genuinely ‘transform’ what we do?

Source: Townsend (2015) CSR is dead. So, what comes next?

Are we serious about making the necessary transformation in our businesses and economies, or are we simply motivated by trying to enhance our corporate image?

“CSR is dead – it’s over!”

So declared Peter Bakker – President of the World Business Council for Sustainable Development



Are there tensions between…

“What gets us into trouble is not what we don't know. It's what we know for sure that just ain't so.”Mark Twain



Are there tensions between…

Framing: the purpose of business!

Ignoring inconvenient truths in our economic context…


Business purpose: A new, emerging level of learning…

And TRANSFORMATION. Leading businesses are already leaving behind the partial, illusory and inadequate practice of CSR. Instead, they are choosing the more earnest, but necessary, task of business transformation - integrating sustainability principles into the heart of everything they do.

Source: Townsend (2015)

Limitations of the conventional narrative for business! Defer to Milton Friedman (1970)

The new debate is all about PURPOSE! Rather than self-seeking and profit maximising, businesses will choose to look outwards and explore how their unique capabilities can be turned to good use – asking themselves, what is our unique contribution to solving the challenges of our time?

Maximising shareholder value – the dumbest idea in the world?

According to Welch, Mackey, Polman, Benioff…


Case study: Unilever

Q: To what extent is Unilever a learning organisation?


Systems thinking, applied…S

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Can we be become truly sustainable, if the system within which we operate is itself unsustainable, and if it does not support and enable sustainable behaviors?

We need to explore our relationship with our economic domain…

Pressure to deliver continuous growthMaximise profitIn the short-term


Summary: brining it all together…

• Business responses – are we learning? Are we going far enough, and fast enough?

• Exercise: how we think businesses should respond

• Reality: we are barely scratching the surface

• Limitations of BAU & CSR thinking

• Highlights tensions: embedded vs. new learning

• New levels of learning – business purpose!

• Case study – Unilever as a learning organisation?

• Recognition: over-riding context of our economic system.

• Explored definitions & attributes

• Models – how learning happens, & translates into performance

• How ‘learning’ is increasingly important in VUCA world

• Many challenges and risks: great acceleration, planetary boundaries, global risks, etc

• But, also many opportunities! Including SDGs, Global Opportunity Report

• Further complexity: disruption!


Thank you!

The Learning Organisation: Are we learning - and fast enough?

Education

Transcript of The Learning Organisation: Are we learning - and fast enough?